Study Finds Canada’s Interactive Digital Media Sector Suffers from Lack of Private Financing at Early Stages
According to a study by the Canadian Interactive Alliance (CIAIC), Canada’s interactive digital media sector has benefited from government assistance and public financing. However, gaps exist when it comes to the financial support of companies in early-stage development.
Many Canadian startups look to the US to finance their growth, as their need for capital increases. To keep Canadian startups in Canada, greater access to Canadian investment opportunities must be created.
“Governments may wish to consider increasing their investments in VC funds with a mandate to invest in the interactive digital media sector.”
A small number of private funds, such as North Innovation Fund, have been created to support interactive digital media. And it also should be noted that the study found that Canada’s angel investor community is becoming more structured and organized. However, they are looking for digital media companies to become more “investor-friendly.”
The government has made a significant impact in providing assistance to interactive digital media at the provincial levels, which has created clusters of digital media in BC, Manitoba, Ontario, and Quebec. However, funding mechanisms should be (1) broadened to increase their scopes, and (2) should encourage marketing and online exploitation of digital media.